Economic repair job underway

Data released today, showing GDP declined by 0.3 per cent in the September quarter, suggests economic conditions remain challenging, Finance Minister Nicola Willis says. 

“Today’s data confirms what Kiwis already know: New Zealand’s economy is under major strain. 

“In fact, further revisions from Stats NZ confirm the economy contracted in three of the last four quarters. On a per capita basis the pain is more significant, with per capita GDP contracting 0.9 per cent in the same quarter.

“It’s evident that the impact of rising interest rates in response to rampant inflation are putting pressure on families already struggling with the cost of living. That pain isn’t just affecting families – it’s dragging down the productive economy.

“Today’s data confirms that New Zealand needs urgent economic repair. That’s why the coalition Government is moving quickly – reducing costs on business, restoring confidence in the fight to beat inflation, and eliminating wasteful spending.

“This week, the Government will pass legislation to restore the Reserve Bank’s focus on inflation, end the Ute Tax, and unwind mandatory union-driven FPA agreements – all part of our plan to restore economic confidence and begin to unwind pressures facing families and businesses. 

“Overcoming these economic conditions won’t be easy. The Government will continue to take swift action to rebuild the economy in the interests of all New Zealanders.”